Landlords need to be ready for EPC changes when advertising their tenancies

Legislation requiring any property advertisements in commercial media to display the indicator from a building's Energy Performance Certificate (EPC) is set to come into force from January 9th 2013, and landlords need to be prepared for the change.

Despite rumours that the new laws would be applicable from October, the National Association of Estate Agents (NAEA) has emphasised that the fresh regulations will not be introduced until next year, but properties will be subject to the change irrespective of how long they have been on the market.

The NAEA's statement said: "All properties which are being advertised for sale or rent must display the Energy Indicator from 9th January 2013, regardless of the length of time the property has been listed.

"Legislation (regulation 5A) requires that the advert 'states the energy performance indicator for that building or building unit'."

With properties that are both for sale and for let having to adhere to the legislation, landlords may start to pay more attention to the green credentials of their existing assets - as well as those that they might be considering investing in.

What's more, as prospective tenants also start to take into account the energy efficiency of a property to save them money on their energy bills, the fact that the indicator will now be displayed on tenancy advertisements could make them even more selective.

So in order to ensure their properties continue to be in high demand, landlords may be thinking of installing LED lighting or fitting extra insulation to boost the EPC rating of their properties.

But whether or not investors choose to make a few improvements, what is vital is that they remember the need to display the EPC indicator when advertising their tenancies from next year.

And if they're concerned about the cost of damage to fixtures such as heat pumps or solar panels, it's a sensible idea to check that their landlord insurance policies cover such installations.